London property prices double the national average

House on see-saw

House prices in London are almost double the average price for England and Wales, according to a report by estate agent Chesterton Humberts.

The group's latest house price poll of polls, which brings together the leading house price indices, reveals house prices in the capital as 1.94 times more expensive than the rest of the country.

The gap between the most expensive and least expensive continues to diverge. The five most expensive regions in England and Wales have increased by 3.4% since the start of the year, while prices in the cheapest five decreased by 5.1%.

Over the last month, house prices in the capital rose by 0.2%, adding an extra £818 to the value of the average property. Prices fell in every other English region, according to the estate agent.

The quarterly Nationwide regional house price index also reports soaring London property prices, with prices up 2.1% year-on-year. In addition, property prices in the capital have increased 17% over the past five years, compared to an increase of 1.3% across the UK as a whole, according to the building society's report.

Robert Bartlett, CEO of Chesterton Humberts, says: "What also sets London out from the rest of the crowd is the fact that house prices were higher in March 2011 than they were in March 2010.

"The typical price of a house in London – £338,583 – is 3.9% below the highest ever price recorded for the capital as a whole."

Prices rises likely

Meanwhile, house price data from Assetz House Price Watch released today shows UK property prices have increased by 0.67% since the start of the year. The average property now costs £197,153.

Stuart Law, chief executive of Assetz, says he expects prices to continue to increase going forward.

"Recent falls in the rate of inflation and unemployment have helped boost consumer confidence, and sellers remain bullish when it comes to pricing a property for sale," he comments.

"These factors, combined with limited supply of property and improving mortgage availability, will continue to deliver an upwards curve in house price growth this year."


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